I spy with my big blue eyes a potential bullish flag on a 4-hour chart! USD/JPY is currently on a descending channel, but it looks like it could be a bullish flag given that the pair had been on an uptrend a few days ago. If that’s the case, then you could wait for a pullback to the bottom of the channel if you want to go long, or you could also follow the overbought Stochastic signal and short now and just place your profit target near the 83.00 area.
Comdoll traders huddle up! AUD/JPY looks like it’s encountering a support at the 87.50 area, which lines up nicely with the 38.2% Fibonacci retracement level. Not only that, Stochastic is also in the oversold region! A profit target at the previous high is good enough if you’re buying the Aussie, but make sure you place a stop loss somewhere below the Fib areas if you’re playing the Fib support setup.
Is GBP/USD going back to its good ol’ range? The pair is hitting a resistance at the 1.5900 handle, which is right near the top of the range. Stochastic is still in the middle ground though, so you might want to wait and see if 1.5900 holds for the pair. Anyone planning on trading this one?
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.